Sustainability is now engine of profitability: DIMO Chairman

DIMO Chairman Ranjith Pandithage 

– Pic by Upul Abayasekara

• Says sustainability is no longer a trade-off with profitability, but a driver of long-term growth
• Calls on businesses to embrace circular economy models, renewable energy and resource efficiency
• Stresses investing in people, communities and purpose-driven workplaces strengthens resilience and competitiveness
• Notes solving environmental and social challenges represents the largest business opportunities

By Charumini de Silva

DIMO PLC Chairman Ranjith Pandithage said businesses must move beyond short-term profit targets and embrace sustainability, as a core growth strategy if they are to remain competitive in an increasingly complex global economy.

Addressing the Sri Lanka-German Business Forum 2026 last week, Pandithage pointed out that sustainability should no longer be viewed as a cost of compliance or a trade-off against profitability, but rather as the foundation of long-term business success.

“For decades, the unwritten rule of the corporate world was simple; grow fast, maximise revenue and let tomorrow worry about itself,” he said.

However, he said now the global landscape has fundamentally shifted. “Business success is no longer just about surviving the next financial quarter. It is about securing the next generation,” he added.

Reflecting on DIMO’s eight-decade journey, Pandithage said the company had learned that sustainable business practices and profitability were increasingly interconnected.

“Sustainability in business is not a trade-off with profitability. It is the very engine that drives it. The most successful companies are proving that when you align your business model with environmental stewardship and social equity, growth does not slow down. It accelerates,” he said. A key focus of his address was the need for businesses to transition from traditional linear production models towards “circular economy” principles that minimise waste and maximise resource efficiency. “Historically, industries had operated on a ‘take, make and dispose’ model, but future growth would require businesses to adopt closed-loop systems, where waste is designed out of operations,” he said.

Pandithage cited DIMO’s own initiatives in remanufacturing, equipment lifecycle extension, renewable energy adoption and resource optimisation as examples of how sustainability can create tangible commercial value.

“By helping our partners’ transition to renewable energy sources and energy-efficient infrastructure, we turn sustainability into tangible business value,” he said.

He called on businesses to treat sustainability not as a regulatory burden, but as a source of innovation and competitive advantage.

“Do not treat sustainability as a compliance cost. Treat it as a pipeline for innovation,” he stressed.

Pandithage also outlined the importance of building social capital through investments in people, communities and skills development.

He noted that modern consumers and employees increasingly expect companies to demonstrate genuine social impact rather than engage in “superficial” corporate social responsibility (CSR) initiatives.

“The modern consumer, and more importantly the modern employee, can see through superficial CSR. They want to buy from and work for companies whose purpose generates goodness,” he added.

Pandithage said DIMO’s purpose of helping customers realise their dreams and aspirations had reinforced the value of investing in technical education, farmer empowerment and inclusive workplace practices.

He said such investments create trust, strengthen brand equity and build resilience during periods of economic uncertainty.

“A loyal, purpose-driven workforce and supportive communities are the ultimate shock absorbers of any business,” he asserted.

The DIMO Chairman also challenged business leaders to adopt a longer-term perspective when making strategic decisions.

“If there is one lesson to draw from sustainable growth, it is that short-termism is the enemy of longevity,” he said, adding that true leadership requires the courage to make decisions today that will bear fruit 10, 20 or even 50 years down the line.

Noting that the private sector possessed the capital, technology and human ingenuity needed to address many of the world’s most pressing environmental and social challenges; he said in doing so, businesses would also unlock significant commercial opportunities.

“The beautiful paradox of the 21st century is that solving these challenges represents the largest market opportunity in human history,” he said, calling on business leaders to build enterprises that are financially strong, environmentally responsible and committed to human development.

“Let us build enterprises that are robust on the balance sheet, kind to the planet and deeply invested in human progress. When we align our growth with the sustainable advancement of society, our businesses will not only survive, but endure,” Pandithage said.